Introduction
Bitcoin Cash (BCH) emerged from a 2017 hard fork of Bitcoin, born out of the community's debate over scalability solutions. Designed to address transaction congestion and high fees, BCH prioritizes on-chain scaling with larger block sizes.
The Birth of Bitcoin Cash
The Scalability Challenge
- Block Size Limitation: Bitcoin's 1MB block size (since 2009) capped transaction throughput at 4–7 transactions per second, causing delays and soaring fees.
Community Divide: By 2015, factions formed:
- Proponents of Larger Blocks: Advocated increasing block size (e.g., to 8MB) for higher capacity.
- Small-Block Advocates: Favored off-chain solutions like SegWit and Lightning Network.
The Hard Fork
On August 1, 2017, miners executed a hard fork at block height 478558. Six hours later, ViaBTC mined the first BCH block (478559), distributing BCH 1:1 to BTC holders. Key upgrades:
- Removed SegWit.
- Increased block size to 8MB (later 32MB).
👉 Learn how BCH compares to BTC
Evolution and Forks
2018: The BCH Roadmap and BSV Split
Mid-Term Plan: BCH proposed:
- 32MB blocks for scalability.
- Reactivated opcodes to enable smart contracts (similar to Ethereum).
- Controversy: Craig Wright (self-proclaimed Satoshi) opposed changes, advocating for a "locked protocol" with 128MB blocks via Bitcoin SV (BSV).
Result: On November 16, 2018, BCH split into:
- BCH ABC (original chain).
- BCH SV (BSV) — later achieved 256MB blocks.
2020: The BCHA vs. BCHN Fork
- Infrastructure Funding Plan (IFP): BCH ABC introduced an 8% block reward tax for developers, sparking backlash.
- Community Resistance: BCH Node (BCHN) released an IFP-free client.
Outcome: On November 15, 2020, BCH forked into:
- BCHA (minority support).
- BCHN (84.2% miner adoption), inheriting the BCH ticker.
Key Features of Bitcoin Cash
- Scalability: 32MB blocks (vs. BTC’s 1MB).
- Low Fees: Average transaction cost under $0.01.
- Smart Contracts: Enabled via opcodes (limited vs. Ethereum).
- Decentralized Development: No single corporate control.
FAQs
1. Is Bitcoin Cash the same as Bitcoin?
No. BCH is a separate cryptocurrency resulting from a 2017 hard fork, with larger blocks and no SegWit.
2. Why did BCH split multiple times?
Forks stemmed from ideological clashes (scaling approaches) and funding disputes (developer vs. miner incentives).
3. What’s the difference between BCH and BSV?
BSV aims to "restore Bitcoin’s original protocol" with massive blocks (2GB), while BCH balances scalability with smart contract functionality.
4. How does BCH handle developer funding?
BCH relies on community donations, unlike BTC’s corporate-backed development (e.g., Blockstream).
5. Can BCH overtake BTC?
Unlikely short-term due to BTC’s first-mover advantage, but BCH excels in low-cost transactions.
6. Where can I buy BCH?
Major exchanges like OKX list BCH for trading.
Conclusion
Bitcoin Cash remains a pivotal player in crypto, championing affordability and scalability. Its turbulent history underscores the challenges of decentralized governance, yet BCH continues evolving as a pragmatic alternative to BTC. For real-time trading, check out 👉 OKX’s BCH markets.